Increasing number of Australian buyers are purchasing property in London with a view to renting them out, it is claimed.
According to London property search company, Sourcing Property, they are buying as an investment. The company has acted for six Australian buy to let clients in the past three months alone.
‘The Australian dollar is extremely strong right now, largely due to Australia being so commodity rich and the boom in China’s demand for its commodities. We’re therefore seeing a number of Australia based buyers, mainly who are purchasing for an investment. They view central London property as a relatively safe investment, and they’re getting a saving on it due to the favourable exchange rate,’ said Jo Eccles, director of Sourcing Property.
‘Most of our Australian clients typically buy a one or two bedroom apartment between £400,000 and £800,000. Some of them fly over to the UK for about a week to look at the options, whereas others buy remotely and never physically see what they’ve bought. In this case, we do the search, shortlist and purchase via email and telephone. Because the rental market for good quality one and two bedroom flats is so strong in London, their buy to let investment is usually rented out within a couple of weeks at most,’ she explained.
Thursday, 2 February 2012
Monday, 23 January 2012
London Commercial Property News: Commercial landlords need to offer monthly payments
Commercial landlords who let their premises to retailers should allow their tenants to move to a month-by-month payment system.
This is according to the British Retail Consortium (BRC), who believe that scrapping the tried and tested quarterly payments system would help businesses manage their finances better, particularly in the months following on from Christmas.
Sarah Cordey, spokeswoman for the BRC, explained: “A large number of landlords still operate on a quarterly basis when it comes to collecting rent up-front for business premises.
“The quarterly rent payment date fell just after Christmas, so again, where companies had not had a Christmas that made up for 2011, they would also in some cases have been faced for a bill for three months in advance, which obviously poses cash flow challenges to any business.”
She added that in her opinion a quarterly rental agreement is an “anachronism” in this day and age due to the speed in which direct bank payments can be made and called for landlords to be more flexible with retailers who are feeling the pinch.
Despite the current economic climate, figures from the Office for National Statistics show that retail sales rose by 2.6 per cent year-on-year in December.
However, several high street chains, such as Peacocks and La Senza, have recently been forced into administration.
London Commercial Property News
This is according to the British Retail Consortium (BRC), who believe that scrapping the tried and tested quarterly payments system would help businesses manage their finances better, particularly in the months following on from Christmas.
Sarah Cordey, spokeswoman for the BRC, explained: “A large number of landlords still operate on a quarterly basis when it comes to collecting rent up-front for business premises.
“The quarterly rent payment date fell just after Christmas, so again, where companies had not had a Christmas that made up for 2011, they would also in some cases have been faced for a bill for three months in advance, which obviously poses cash flow challenges to any business.”
She added that in her opinion a quarterly rental agreement is an “anachronism” in this day and age due to the speed in which direct bank payments can be made and called for landlords to be more flexible with retailers who are feeling the pinch.
Despite the current economic climate, figures from the Office for National Statistics show that retail sales rose by 2.6 per cent year-on-year in December.
However, several high street chains, such as Peacocks and La Senza, have recently been forced into administration.
London Commercial Property News
Tuesday, 27 December 2011
CML Supports FSA Mortgage Lending Reform
The Council of Mortgage Lenders (CML) has said that it is pleased with the proposals for reform on mortgage lending put forward by the Financial Services Authority (FSA).The FSA this week outlined new stricter lending rules which it hopes will prevent banks and building societies granting mortgages to people which cannot afford the repayments or allowing them to take reckless measures such as interest-only mortgages without a suitable repayment vehicle.
Initially, the CML said that it had concerns that such restrictions, which will come into forced in 2013, would hinder the market and further reduce people’s ability to acquire.But, after consultation with the FSA, it is satisfied that the changes are a positive move for borrowers and the housing market.
CML director general Paul Smee said: "If lenders are to make their contribution to improving the supply of housing and to the wider agenda for economic growth, then they need a regulatory framework which also supports that objective."
Despite the changes, EH Landlord Services have predicted that the housing market will remain strong for the next decade at least.
Mortgage Rate and Home Loan News
Initially, the CML said that it had concerns that such restrictions, which will come into forced in 2013, would hinder the market and further reduce people’s ability to acquire.But, after consultation with the FSA, it is satisfied that the changes are a positive move for borrowers and the housing market.
CML director general Paul Smee said: "If lenders are to make their contribution to improving the supply of housing and to the wider agenda for economic growth, then they need a regulatory framework which also supports that objective."
Despite the changes, EH Landlord Services have predicted that the housing market will remain strong for the next decade at least.
Mortgage Rate and Home Loan News
Thursday, 22 December 2011
December Dip In Rental Prices Provides Opportunity for Renters
December is a great month for people to find a rental property, claims one specialist.Property analyst Samantha Baden of Find a Property claims that monthly rents have dipped in the past month and that provides a wealth of opportunity for people looking to rent a new home.
Since the winter of 2008, rental prices have experienced a minor lull in the last two months of the year before rising again in the new year."This temporary dip in asking prices won't last long, and it's a great opportunity for potential tenants to agree a rate that's favourable in comparison to the rest of the year," she stated.
Overall UK rental prices fell by 1.5 per cent during November. The East Midlands, however, felt the highest fall, with prices dripping by 4.8 per cent.
Despite this the private rental market will remain strong well into 2012 according to the Residential LandlordsAssociation because there is currently not enough properties available to meet demand.
London Rental Property News
Since the winter of 2008, rental prices have experienced a minor lull in the last two months of the year before rising again in the new year."This temporary dip in asking prices won't last long, and it's a great opportunity for potential tenants to agree a rate that's favourable in comparison to the rest of the year," she stated.
Overall UK rental prices fell by 1.5 per cent during November. The East Midlands, however, felt the highest fall, with prices dripping by 4.8 per cent.
Despite this the private rental market will remain strong well into 2012 according to the Residential LandlordsAssociation because there is currently not enough properties available to meet demand.
London Rental Property News
Saturday, 10 December 2011
Private Rental Sector Not Enough to Boost Supply
The RLA report that the report on the private rented sector warns that current returns for landlords are very low once costs and inflation are taken into account, despite headline reports of rising rents. This is restricting the amount of new accommodation available to meet increasing demand.
Prepared by Michael Ball, Professor of Urban and Property Economics at the University of Reading, the Report highlights that rents remain significantly below their early 2008 levels, when adjusted for inflation. The Report used a new economic model fed with financial data from over 200 landlords.
Following a survey of landlords' costs and returns, the Report found that present rent levels do not cover landlords' expenses when all factors are taking into account, including refurbishment and borrowing costs, agents' and legal fees, voids and arrears, energy and safety certificates, repairs, depreciation and regulatory compliance.
Additionally the tax burden on the private rented sector is much more than on other types of tenure, averaging £1,000 a dwelling. Sharp real falls in the value of their properties over the past four years have pushed total annual returns for many landlords into negative territory.
Currently, almost 90% of English landlords are private individuals and couples and many residential investors would have been better-off if they had invested their money elsewhere.
The Report warns that the consequences for tenants will be "grim" as they face increasing rents and a chronic shortage of properties. Economic recovery will also be significantly held back by a lack of affordable rental housing. It calls for Government reforms to the taxation and regulatory treatment of the sector to alleviate pressures on rents.
Commenting ahead of the formal launch of his Report today (November 22nd) at the House of Commons at a meeting of the All Party Parliamentary Group for the Private Rented Sector, Professor Ball said:
"There is much hype about the private rented sector at present, but the reality is that landlord returns are generally poor and with a weak economy are likely to stay that way. Investment in the past was driven by rising house prices, now there is a need to rethink taxation and regulation so that rental returns come to the fore at rent levels that are affordable for tenants."
Responding to the report, Alan Ward, Chairman of the Residential Landlords Association commented:
"Professor Ball's report demonstrates clearly that the private rented sector is taken for granted - the returns are only superficially rewarding because few landlords account for the cost of regulation and taxation. Only the lack of an alternative secure investment, and the curse of capital gains tax, prevents many landlords from dis-investing just when more people need private renting because of lack of access to the owner occupied and social rented sectors."
Prepared by Michael Ball, Professor of Urban and Property Economics at the University of Reading, the Report highlights that rents remain significantly below their early 2008 levels, when adjusted for inflation. The Report used a new economic model fed with financial data from over 200 landlords.
Following a survey of landlords' costs and returns, the Report found that present rent levels do not cover landlords' expenses when all factors are taking into account, including refurbishment and borrowing costs, agents' and legal fees, voids and arrears, energy and safety certificates, repairs, depreciation and regulatory compliance.
Additionally the tax burden on the private rented sector is much more than on other types of tenure, averaging £1,000 a dwelling. Sharp real falls in the value of their properties over the past four years have pushed total annual returns for many landlords into negative territory.
Currently, almost 90% of English landlords are private individuals and couples and many residential investors would have been better-off if they had invested their money elsewhere.
The Report warns that the consequences for tenants will be "grim" as they face increasing rents and a chronic shortage of properties. Economic recovery will also be significantly held back by a lack of affordable rental housing. It calls for Government reforms to the taxation and regulatory treatment of the sector to alleviate pressures on rents.
Commenting ahead of the formal launch of his Report today (November 22nd) at the House of Commons at a meeting of the All Party Parliamentary Group for the Private Rented Sector, Professor Ball said:
"There is much hype about the private rented sector at present, but the reality is that landlord returns are generally poor and with a weak economy are likely to stay that way. Investment in the past was driven by rising house prices, now there is a need to rethink taxation and regulation so that rental returns come to the fore at rent levels that are affordable for tenants."
Responding to the report, Alan Ward, Chairman of the Residential Landlords Association commented:
"Professor Ball's report demonstrates clearly that the private rented sector is taken for granted - the returns are only superficially rewarding because few landlords account for the cost of regulation and taxation. Only the lack of an alternative secure investment, and the curse of capital gains tax, prevents many landlords from dis-investing just when more people need private renting because of lack of access to the owner occupied and social rented sectors."
Sunday, 20 November 2011
National Home Improvement Council Top Tips for Selling Your Home
People looking to add few pounds to their property value should make it warmer and more energy efficient, says the National Home Improvement Council (NHIC).
Andrew Leech, executive director of the body, says that loft and cavity wall insulation will not only help to keep your energy bills down it will also bump up the value of your home and make it more appealing to potential purchasers.
He also stated that the house has to have what he calls "kerb appeal", meaning it looks good from the outside and suggested that ideally the windows should be double glazed and secure.
"If you're talking about looking at selling a house on then you have got to make it look as normal as possible, you don't want any garish paintings, decorations or [colour] schemes running throughout the house. You want to make it a very neutral environment because people can relate to that more," Mr Leech added.
Phil Spencer, presenter of Channel 4's Location, Location, Location, said last year that painting the outside of the house may cost between £100 and £1,000 but could add around £5,000 to its value.
London Property Market News
Andrew Leech, executive director of the body, says that loft and cavity wall insulation will not only help to keep your energy bills down it will also bump up the value of your home and make it more appealing to potential purchasers.
He also stated that the house has to have what he calls "kerb appeal", meaning it looks good from the outside and suggested that ideally the windows should be double glazed and secure.
"If you're talking about looking at selling a house on then you have got to make it look as normal as possible, you don't want any garish paintings, decorations or [colour] schemes running throughout the house. You want to make it a very neutral environment because people can relate to that more," Mr Leech added.
Phil Spencer, presenter of Channel 4's Location, Location, Location, said last year that painting the outside of the house may cost between £100 and £1,000 but could add around £5,000 to its value.
London Property Market News
Wednesday, 2 November 2011
Police Crime Maps should not be The Only Source Of Information
In response to the launch of Police Crime Map 2.0, Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA) and the Association of Residential Lettings Agents (ARLA) said:
"Any measure that helps people research an area they may be moving to is a good idea in principal, but this should always be used as one of a range of tools, rather than a definitive measure for making a decision about any one area.
"We would always urge prospective house buyers or tenants to seek advice from as many credible sources as possible, as well as from a licensed NAEA or ARLA agent who can provide professional and reliable insight into local areas."
"Any measure that helps people research an area they may be moving to is a good idea in principal, but this should always be used as one of a range of tools, rather than a definitive measure for making a decision about any one area.
"We would always urge prospective house buyers or tenants to seek advice from as many credible sources as possible, as well as from a licensed NAEA or ARLA agent who can provide professional and reliable insight into local areas."
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